SCHD vs VKQ
Schwab US Dividend Equity ETF vs Invesco Municipal Trust
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. VKQ offers more diversification with 276 holdings.
Side-by-Side Comparison
| Metric | SCHD | VKQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 1.77% | |
| AUM | $103.7B | $2,913.25 | |
| Dividend Yield | 3.31% | 7.42% | |
| Holdings | 104 | 537 | |
| YTD Return | +25.62% | +6.20% | |
| 1Y Return | +32.62% | +15.34% | |
| 3Y Return (annualized) | +15.58% | +9.11% | |
| 5Y Return (annualized) | +9.63% | -0.65% | |
| Volatility (annualized) | 13.6% | 13.9% | |
| Max Drawdown | -33.4% | -58.5% | |
| Fund Family | Charles Schwab Asset Management | Invesco (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Oct 20, 2011 | Sep 27, 1991 |
SCHD vs VKQ Performance
Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management and Invesco Municipal Trust (VKQ) is a ETF from Invesco (US). Over the past year SCHD returned +32.62% while VKQ returned +15.34%. Year to date, SCHD is up 25.62% versus a gain of 6.20% for VKQ.
Over three years, SCHD compounded at +15.58% per year against +9.11% for VKQ; over five years the annualized figures are +9.63% and -0.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.47% annualized vs -0.13%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VKQ has been the more volatile fund, with annualized monthly volatility of 13.9% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -33.4% for SCHD and -58.5% for VKQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SCHD charges 0.06% per year while VKQ charges 1.77%. On a $10,000 position that is $6 vs $177 annually, a gap of $171 per year that compounds over a long holding period. On income, SCHD currently yields 3.31% against 7.42% for VKQ.
Holdings Overlap
SCHD and VKQ share 0 holdings out of 376 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SCHD or VKQ?
SCHD has an expense ratio of 0.06% while VKQ charges 1.77%. SCHD is the cheaper option. On a $10,000 investment, that is $171 per year of difference.
Which performed better, SCHD or VKQ?
Over the past year SCHD returned +32.62% vs +15.34% for VKQ, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), SCHD annualized +11.47% vs -0.13% for VKQ. Past performance does not guarantee future results.
Which is riskier, SCHD or VKQ?
VKQ has been the more volatile fund at 13.9% annualized versus 13.6% for SCHD. Worst drawdown: SCHD -33.4% vs VKQ -58.5%.
Should I hold both SCHD and VKQ?
SCHD and VKQ have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SCHD and VKQ?
SCHD and VKQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 376 unique securities.
Which pays a higher dividend, SCHD or VKQ?
SCHD yields 3.31% while VKQ yields 7.42%, so VKQ currently pays the higher dividend yield.
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